The Trade Desk (TTD - Free Report) closed at $430.29 in the latest trading session, marking a +0.57% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, added 0.43%.
Coming into today, shares of the digital-advertising platform operator had lost 0.3% in the past month. In that same time, the Computer and Technology sector gained 6.92%, while the S&P 500 gained 6.78%.
TTD will be looking to display strength as it nears its next earnings release. On that day, TTD is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 67.37%. Meanwhile, our latest consensus estimate is calling for revenue of $136.19 million, down 14.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $696.59 million, which would represent changes of -14.91% and +5.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TTD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 10.3% lower within the past month. TTD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TTD is holding a Forward P/E ratio of 136.11. This valuation marks a premium compared to its industry's average Forward P/E of 33.08.
It is also worth noting that TTD currently has a PEG ratio of 5.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 2.5 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.